John Ternus is entering his second week as Apple CEO, and the company has unveiled the biggest change in the history of the iPhone since its launch nearly 20 years ago. Ternus, who took over at Apple after Tim Cook stepped down as CEO, took to the stage on Wednesday at the company’s annual product launch event. Behind him were giant images of the first foldable iPhone. With a design that opens like a book, the new iPhone, dubbed the Duo, is the largest model Apple has ever made. With a starting price of $2,000, which can go up to $3,200, it is also the most expensive iPhone to date.
Ternus said the Duo is “inspired by the iPad,” and described the folding mechanism as “fluid and completely intuitive.” Apple has been working on a foldable phone for several years. When fully opened, the device resembles a small iPad. When folded in half, it looks like a larger iPhone.
During the event, Ternus said Apple wanted to avoid the look and feel of other foldable phones on the market. These devices often “look like two phones stuck together… making a larger screen actually look much smaller.” The Duo, he said, is “the result of a series of incredible innovations that we think will redefine how a foldable phone is used.” Ternus has been directly involved in the development of the foldable iPhone, having held a senior leadership position in Apple’s hardware division for many years before being tapped to succeed Cook earlier this year. Ben Wood, principal analyst at technology research firm FDM, said Ternus’ promotion was likely timed “to coincide with what will probably be one of the most important iPhone launches in many years.”
“At Apple, nothing happens by accident,” Wood added. The iPhone design overhaul could also address criticism that Apple has yet to deliver another major product or truly exciting innovation since the first iPhone in 2007. Until now, the highest starting price for a new iPhone has been around $900. Apple also introduced the iPhone 18 and iPhone 18 Pro on Wednesday, with starting prices of $1,200 and $1,300, respectively.
Chatterjee said the foldable iPhone could follow the same path as Apple’s Vision Pro headphones, which the company launched at a price of $3,699 but failed to sell well. On the other hand, he said the Duo could become “the next Apple Watch,” a product that, while not as popular as the iPhone, is bought by millions of people every year. Wood noted that current foldable phones, made by companies like Samsung and Huawei, account for only about 2% of smartphone sales. While Apple’s version is expected to significantly increase interest and demand for foldable phones, their sales are projected to reach only about 4% of the total market over the next decade, according to FDM data and analysis.
The iPhone is Apple’s best-selling product, accounting for more than half of the company’s annual sales. In recent quarters, Apple has said demand for the iPhone is higher than ever, and the latest version of the device has been hailed as the most successful product launch in the company’s history.